Exam2 - FC - The flashcards are formatted for printing...

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Components Raw Materials
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The purchased items or extracted materials that are transformed into components or products. Parts or subassemblies used in building the final product.
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Finished Goods Work-in-Process (WiP)
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Any item that is in some stage of completion in the manufacturing process; partially finished units. Completed products that will be deliver to customers.
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Maintenance, Repair, and Operational (MRO) Inventory Distribution Inventory
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Fished goods and spare parts that are at various point in the distribution system (moving raw materials, components, etc). Items that are used in manufacturing but do not become part of the finished product.
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Independent Demand Inventory Item Maintenance, Repair, and Operational Inventory
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i.e. supplies Inventory item whose demand is not related to (or dependent upon) some higher level item; usually thought of as finished products.
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Dependent Demand Inventory Item Forecasted; Derived
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Demand for independent demand inventory items is thought of as ____ demand, while demand for dependent demand inventory items is thought of as ____ demand. Inventory item whose demand is related to (or dependent upon) some higher level item; usually thought of as the materials, parts, components, and assemblies that make up the finished product.
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Derive Independent and Dependent Demand Inventory Items
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While we need to make the timing and sizing decisions for all inventory items, we must be careful in the manner in which we make those decisions for these two types of items: i.e. if you decide to produce 1000 wagons, you can ____ demand for wagon wheels will be 4000
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Anticipation or Seasonal Inventory Anticipation or Seasonal Inventory
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Inventory are often built in expectation of future demand, planned promotion programs, seasonal demand fluctuations, plant shutdowns, vacations, etc. Necessary to build inventory for later in the year; for predictable, seasonal variations.
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Lot-Size Inventory or Cycle Stock Fluctuation Inventory or Safety Stock
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Inventory is sometimes carried to protect against unpredictable or unexpected variations in demand; for unpredictable, random variations. Inventory is frequently bought or produced in excess of what is immediately needed in order to take advantage of lower unit costs or quantity discounts; spreads fixed cost over more
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units.
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Speculative or Hedge Inventory Transportation or Pipeline Inventory
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Inventory is used to fill the pipeline as products are in transit in the distribution network; need inventory on the trucks to keep things running smoothly. Inventory can be carried to protect against some future event, such as a scarcity in supply, price increase, disruption in supply, strikes, etc (i.e. stocking up on water before a hurricane).
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Customer Service Maintenance, Repair, and Operating (MRO) Inventory
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items are used to support general operations and maintenance (i.e. maintenance supplies,
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Exam2 - FC - The flashcards are formatted for printing...

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